Airlines get international rights granted

India’s domestic carrier Jet Airways along with other domestic airlines year-long battle to obtain international flying rights may be granted in as little as a month.

Civil Aviation Minister Ajit Singh said the rights which have been pending with the government for the past 12 month will allow the Indian airlines to serve more lucrative routes, Livemint reported.

The airlines have not been given international rights as the government auditor questioned the sense behind providing bilateral rights to international carriers which could ultimately hurt the flag carrier Air India.

The Civil Aviation Minister Ajit Singh said that it is “safe to say” that international flying rights would be approved within one month.

“We are reviewing the applications. There will be due consideration given to Air India’s plans. If there is any conflict it will be referred to a committee otherwise applications will be cleared soon,” Mr Singh said.

The move will allow Jet Airways to expand its services into Europe and other medium-haul destinations, while budget carrier SpiceJet and IndiGo will be able to expand into West and South East Asia.

While the move will assist Indian carriers compete with other international airlines, an analyst warns the grant seems to be rushed.

Air India’s retired Executive Director Jitender Bhargava said it is concerning that Air India was pulling out from international routes, while the government is discussing a six million dollar bailout for the airline.

“The basic thing is that one by one the airline is withdrawing from these routes but at the same time the government is forcing Air India to follow government procedures which are neither operationally efficient nor cost effective,” Mr Bhargava said.

 “The government in its capacity as Air India owner ought to take a call whether all these benefits that Air India enjoyed need to be withdrawn when the airline continues to be run by the government rules procedures and laws.

“There are huge disadvantages that Air India suffers being a government carrier.”

Source - etravelblackboardasia